YANGON UNIVERSITY OF ECONOMICS DEPARTMENT OF ECONOMICS MASTER OF ECONOMICS A STUDY OF INFRASTRUCTURE DEVELOPMENT ON RURAL SOCIETY IN TAIKKYI TOWNSHIP (2009-2018) YE HTET ZAW SEPTEMBER, 2019 YANGON UNIVERSITY OF ECONOMICS DEPARTMENT OF ECONOMICS MASTER OF ECONOMICS A STUDY OF INFRASTRUCTURE DEVELOPMENT ON RURAL SOCIETY IN TAIKKYI TOWNSHIP (2009-2018) A thesis submitted as a partial fulfillment towards the requirements for the degree of Master of Economics, M.Econ (Economics) Supervised by: Submitted by: Daw Yi Yi Win Mg Ye Htet Zaw Lecturer Roll No.8 Department of Economics M.Econ (Eco) Yangon University of Economics SEPTEMBER, 2019 ABSTRACT For a nation’s development, the main factor such as natural resources, physical resources and human resources, technological improvement, efficient institution and infrastructure development are essential. The infrastructures is important for economic growth and regional development, and these are also essential for rural development and their livelihoods. Every nation need basic infrastructure such as rural roads, tracks, bridges, irrigation schemes, water supplies and schools, health centers and market that are mostly need for people who live in rural areas. This study analyzes the effects of infrastructure development on rural society in Taikkyi Township. The survey is conducted in Taikkyi Township as a case study. It is found that there is an improvement of rural infrastructures and rural development in Taikkyi Township. It is also found that transportation costs and commuting times are reduced, and outputs to markets are quickly distributed because of the development of transportation sector. Therefore, construction sector is a main source for rural development because this can create the job opportunities and brings other positive impacts. i ACKNOWLEDGEMWNTS Firstly, I would like to express my sincere gratitude to all persons who kindly helped and supported in doing this study. I would like to acknowledge my gratitude to Dr. Tin Win, Rector of the Yangon University of Economics, and Dr. Ni Lar Myint Htoo, Pro-Rector, Yangon University of Economics for their permissions to write this thesis paper and also thanks to Dr. Cho Cho Thein, Professor and Head of Department of Economics for granting permission to write this thesis in this field of study. It is a great pleasure to express my high and special gratitude to my supervisor, Daw Yi Yi Win, Lecturer, Department of Economics, Yangon University of Economics for valuable guidance and recommendations in the completion of this thesis paper. Moreover, I would like to expert my deep appreciation to all teachers who shared the invaluable knowledge and gave great guidance and respondents who earnestly and willingly responded to the interview and questionnaire. Finally, I would to offer my deep gratitude to those who earnestly helped and contributed directly and indirectly to accomplish this study. I also acknowledge with them and love to all faculty members and teachers who have supported and coached to me throughout my Master of Economics educational studies. ii TABLE OF CONTENTS Page ABSTRACT i ACKNOWLEDGEMENTS ii TABLE OF CONTENTS iii LIST OF TABLES v LIST OF ABBREVIATIONS vi CHAPTER I INTRODUCTION 1.1 Rationale of the Study 1 1.2 Objective of the Study 3 1.3 Scope and Limitation of the Study 3 1.4 Method of the Study 3 1.5 Organization of the Study 4 CHAPTER II LITERATURE REVIEW 2.1 Concept of Infrastructure 5 2.2 Concept of Rural Development 8 2.3 Impact of Infrastructure Development 11 2.4 Review on Pervious Study 16 CHAPTER III OVERVIEW OF INFRASTRUCTURE AND RURAL DEVELOPMENT IN MYANMAR 3.1 History of Infrastructure Development in Myanmar 18 3.2 Rural Development in Myanmar 30 3.3 Rural Development Policies and Guidelines 31 3.4 Infrastructure and Rural Development 33 3.5 Overview of Yangon Region 34 CHAPTER IV ANALYSIS ON THE DEVELOPMENT OF TAIKKYI TOWNSHIP 4.1 Geographical Situation of Taikkyi Township 37 4.2 Climate and Physical Feature of Taikkyi Township 38 iii 4.3 Infrastructure Development and Socio Economic Situation 40 4.4 Energy and Electrical Power 47 4.5 Health Sector 49 4.6 Education Sector 51 4.7 Results of the Key Informal Interview 54 CHAPTER V CONCLUSION 5.1 Findings 57 5.2 Suggestions 58 REFERENCES APPENDIX iv LIST OF TABLES Table No. Title Page 3.1 Construction of Roads in Myanmar 22 3.2 Container Port Throughput 24 3.3 Myanmar Railway Daily Train Runs 25 3.4 Construction of Railway Lines in Myanmar 25 3.5 The (15) Biggest Airports in Myanmar 27 3.6 Myanmar Energy Sector 29 4.1 Population of Taikkyi Township 37 4.2 Population of Ethnic in Taikkyi Township 38 4.3 Foreigner in Taikkyi Township 39 4.4 Occupation of Population in Taikkyi Township 39 4.5 Annual Grain Production in Taikkyi Township 41 4.6 Annual Groundnut and Sesame Production in Taikkyi Township 42 4.7 Annual GDP for Taikkyi Township 43 4.8 Neighbor Township Roads from Taikkyi Township 44 4.9 Car Terminal from Taikkyi Township 45 4.10 Water Way of Taikkyi Township 45 4.11 Construction of Roads in Taikkyi Township 46 4.12 Construction of Bridges in Taikkyi Township 47 4.13 No. of Electrifying Villages in Taikkyi Township 48 4.14 Health Indicators of Taikkyi Township 50 4.15 Hospital Services and Administrative Indicators in Taikkyi Township 51 4.16 No. of Schools in Taikkyi Township 52 4.17 No. of Students and Teachers in Taikkyi Township 53 4.18 Percentage of Matriculation Success 54 v ABBREVIATIONS ARI Acute Respiratory Infection BOT Build Operate Transfer CBR Crude Birth Rate CDR Crude Death Rate CNG Compressed Natural Gas\ DRD Department of Rural Development IATA International Air Transport Association IMR Infant Mortality Rate JICA Japan International Cooperation Agency MPHC Myanmar Population and Housing Census PSI Population Services International RHC Rural Health Centre U5MR Under 5 Mortality Rate WEF World Enabling Forum vi CHAPTER I INTRODUCTION 1.1 Rationale of Study In developing countries, most of the people live in rural area. Through investment in rural roads and other infrastructures and social programs, the government can make effort to improve the level of the rural population. The government has initiated several efforts to improve the quality of the people’s life in the urban or rural areas. There is a huge gap between the population living in the urban and rural areas. Geographical, educational, income, gender and ages, as well as language and race gaps are some of the gaps between areas. The infrastructure development in the rural areas is also an evidence of the government commitment in bridging the gaps between the rural and urban areas. These investments have provide access to facilitated markets, lowered costs of production and consumption. This investment have directly effect on poverty reducing by increasing access to living standards and economic opportunities. Infrastructural investment as an investment that can contribute the increase of economic growth. Infrastructure development is none other than a mechanism that increases the living quality of a society. In terms of economy, infrastructure development can impact the employment rate, productivity, and income as well as give an added value. Infrastructure development can also boost political integration and reduce societal geographical gaps. Today, infrastructure development has become a much-debated topic since scholars from various countries have utilized the aspect of infrastructure development as a parameter and index to measure the ability of each country to complete globally. This is mainly access to basic, adequate facilities is viewed as strongly related to the wellbeing of general population in any country. Better road access would contribute to economic growth by reducing transportation costs, travel times and vehicle costs. The number of vehicles, and passengers and agricultural products are quickly moved to another because of 1 improved transportation. With the improvement of transportation infrastructure, and growth of the farmer’s income, more rural household purchased motors and vehicles to undertake their business, agriculture or non-agriculture firms. Road can increase rural households’ access to agricultural inputs and product markets. The improvement of infrastructure can transfer to develop from growth. The lack of funds is the key factor restricting the development of infrastructure. Poor infrastructure is an important cause of poverty. To promote socio-economic development in rural or poor areas, construction of transportation infrastructure should be accelerated to improve the living conditions of the poor. Poverty reduction is widely accepted as a key issue in sustainable development. Poverty reduction is a main objective in the developing countries. Poverty is mainly located in rural areas, and it related with rural development. Thus, rural people need infrastructure investments for their opportunities. Improving the access of rural poor to asset which includes human assets like education and health but also productive assets, mainly land and water. Improving the access of the rural poor to new technologies. Improving the access of the rural poor to fair and functioning markets, this includes inputs, products but also finances and last but not least labor. Decentralization of institutions in order to make these institutions accessible to the poor and in order to directly link them to the institutions of the poor. In transport, improved roads mean less time to reach markets and services, reduced costs, and increased quality and frequency of services. In agriculture, they mean increased overall levels of agriculture activity and a land-use ship by farmers from low value cereals toward high value fruits and orchards. In health and education, improved roads have resulted in double enrollment in primary education over ten years a significant increase in visits to primary health care facilities and clinics. The quality of education and health services also improved, as greater accessibility made it easier to recruit teachers and medical staff.